But there is one critically important difference between money and currency:

Money is a store of value, while currency is just a receipt for that value

Think of this like when you check your coat at a restaurant or club – you give them your coat, and they give you a little ticket stub with a number on it.

That ticket stub is your receipt for your coat (the actual thing), and therefore can be considered to have the “same value” as your coat. As long as it is linked to your coat, it has that value.

But as soon as you decouple the ticket from your coat and start thinking that the ticket alone IS your coat, it’s pretty obvious to see the problems that would arise.

A ticket stub won’t keep you warm in the cold. It’s not the real thing, it’s just a receipt.

If the coat check person were to give you three of the same receipt for your coat, you don’t now all of the sudden have three coats – it’s still just the one.

But if you start losing sight of the fact that the receipt isn’t your coat, then you might start to think that way, and get manipulated by those that know it’s not actually the same as your coat.

The Truth About What A Dollar Is

This is the current situation we’re dealing with in almost every major country within the world, as we’re all using fiat currency, which is nothing more than a receipt for real money.

Real money is where the actual “value energy” is stored. It is your coat in the coat check.

But ever since we decoupled currency from money – aka, went off the gold standard to a purely fiat system where the dollar is backed by nothing but our governments word – we’re now just trading receipts that can’t actually get you your coat when you need it.

Because of this, the government can freely print more receipts, allowing them to spend money they don’t actually have on social projects, war, government initiatives, etc., while we’re left holding the bag when the currency we use everyday becomes valueless.

Cryptocurrencies: Money And Currency All In One

This is why cryptocurrencies are such an amazing new way for us to approach our financial system.

Like gold and other commodity currencies, bitcoin and other good cryptocurrencies have a set amount of supply that cannot be changed. This is the critical factor that makes any form of money a “good” money.

But because cryptocurrencies are digital, they offer many advantages in use over gold.

For example, cryptocurrencies have advantages in each of the traits of money:

Medium of Exchange – You can easily use them in exchange for goods and services, especially as more businesses begin accepting them

A Unit of Account – They’re based on mathematical algorithms that keep track of transactions, publicly and permanently on the blockchain, which gold cannot do

Portable – They always exist in the network and all you need is a way to connect to the network to use them, unlike gold which you have to physically carry around

Durable – Since it’s all digital information, there is no fatigue or damage that can be done to the actual units

Divisable – Cryptocurrencies can be divided into very small fractions with 100% accuracy, while gold can only be accurately divided so far, until it’s no longer useful to keep dividing it

Fungible (Interchangeable) – More than any other money, cryptocurrencies are the most easily interchangeable for other forms of money or goods and services

And of course, because the value of cryptocurrencies is completely determined by their use on the free, global market, they are an actual store of value that has true public consensus – we all agree that one bitcoin has a certain value, based on people’s real demand for it.

Cryptocurrencies are an actual store of money, and yet they’re also more easily able to be used as a currency, in actual circulation.

This means you get the best of both worlds.

It’s like being able to keep your coat with you in the restaurant or club and put it in your pocket to be used later – you don’t need any “receipt” for it, because you actually have the real thing with you, and yet you can easily keep it with you without the hassles and inconvenience.

Note: The only potential downside to cryptocurrencies is that you do need electricity and internet connection to use them, which is why in the grand scheme, it’s a good idea to hold some physical assets, like gold or silver, as well. But if you’re new to this side of money, starting with cryptocurrencies is the best bet. If you need help getting started, we highly recommend checking out our Perfect Portfolio program, which takes you from zero knowledge of bitcoin and cryptocurrencies, all the way to having a complete and diverse portfolio with several different cryptocurrencies, while being able to track, trade, and secure all your funds quickly and easily.

Stop Trading Useless Receipts

Cryptocurrencies are truly the money of the future.

They can’t be controlled or stopped because they exist as a part of a free market where the people decide as an individual-collective.

They are able to act as both money and currency, as opposed to the dollar bill and other fiat currencies, which are only receipts for real money – not real money themselves.

With the patterns we’ve seen in the recent years around our economics using fiat currency, we know that these receipts will soon be worthless.

You can only print so many receipts before people start realizing they don’t mean anything, and we’re printing fiat currency now faster than ever in history.

Luckily, we don’t need permission to exit this ridiculous fiat system of insanity and protect ourselves by holding real assets of value – cryptocurrencies and physical assets.